The Hong Kong Monetary Authority, HKMA has announced the launch of a regulatory framework for stablecoins issuers. HKMA confirmed the development in a guideline released on Tuesday to clarify the upcoming stablecoin ordinance, adding that it will come into effect on August 1st, 2025.Â
The guideline cover supervision of licensed stablecoin issuers and addresses Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) regulations. In addition, the regulator also plans to publish this set of guidelines in the gazette on August 1st, 2025.
It’s worth noting that alongside the finalized rules, the regulator also plans to launch a public registry of licensed issuers. This registry, as revealed, is an integral part of Hong Kong’s regulator’s broader push to bring oversight to the local crypto ecosystem.
Meanwhile, the Hong Kong Monetary Authority’s chief executive, Eddie Yue revealed that the regulatory authority will issue very few licenses as the new regulatory framework takes effect. He added that the August 1st regulation aims to bring accountability and stability to the growing stablecoin sector while protecting investors from fraud and excessive speculation.
Hong Kong stablecoins ordinance to penalize erring issuers
Yue added that this new stablecoins ordinance makes it a criminal offense to offer or promote unlicensed fiat-referenced stablecoins (FRS) to retail investors. The executive added that it carries a penalty of up to a level five fine of 50,000 HK dollars (about $6,300) and a maximum sentence of six months imprisonment.
However, the regulator warned members of the public to remain vigilant and beware of scam as its yet to issue any license. It added that in the near future, members of the public will be able to access approved licenses through the register of licensed stablecoin issuers.
The regulator also warned the public to stay clear of any public communication or statement that could be misinterpreted as creating unrealistic expectations. It also added that it’s an offense under the stablecoins ordinance to falsely proclaim oneself as a licensee or an applicant.
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